topic Re: Worst 8400 I've spent in a while in General Credit Topics

Worst 8400 I've spent in a while

Anonymous — Wed, 01 Aug 2012 07:24:31 GMT

So I've been working on my credit in general and decided to pay off the remainder of my student loans,which the remaining balance was $8,400. I use this site and the credit karma app as well. The credit karma app lowered my score by 22 points and also changed my length of open account avg to an F. My student loans (8 of them) were all 6-9 years old and added a lot of account history. It alsat spy's I have no open installment loans anymore which I take is a bad thing. I'm kicking myself thinking I should of kept paying the minimum and milked them for another 5 years.

Re: Worst 8400 I've spent in a while

marty56 — Thu, 02 Aug 2012 21:42:07 GMT

Credit karama provides FAKO scores so they can be ignored as well as the advice they give to improve them. PIF'ing any loan as always a good idea even if you loose some FICO points. Focus on the main issues on your CR to improve your FICO score.

Re: Worst 8400 I've spent in a while

Anonymous — Wed, 01 Aug 2012 08:35:08 GMT

I understand, but my main problem is AAoA and paying them off just got rid of my 8 oldest accounts.

Re: Worst 8400 I've spent in a while

bettercreditguy1 — Wed, 01 Aug 2012 11:45:15 GMT

It is still better for the long range goals, even if short term suffers to pay off your debts. The Fico algorithm also factors in longevity of minimal debt as well.It just does not seem to effect the scores as rapidly. It's kind of like keeping your car clean, do it weekly instead of annually and you don't notice it so much.

Re: Worst 8400 I've spent in a while

DaveSignal — Wed, 01 Aug 2012 11:56:37 GMT

@Anonymous wrote:
I understand, but my main problem is AAoA and paying them off just got rid of my 8 oldest accounts.

FICO still calculates your closed accounts for AAoA. Your AAoA didn't change as far as FICO is concerned.

Re: Worst 8400 I've spent in a while

MarineVietVet — Wed, 01 Aug 2012 13:31:33 GMT

@Anonymous wrote:
So I've been working on my credit in general and decided to pay off the remainder of my student loans,which the remaining balance was $8,400. I use this site and the credit karma app as well. The credit karma app lowered my score by 22 points and also changed my length of open account avg to an F. My student loans (8 of them) were all 6-9 years old and added a lot of account history. It alsat spy's I have no open installment loans anymore which I take is a bad thing. I'm kicking myself thinking I should of kept paying the minimum and milked them for another 5 years.

As Marty said ignore the CK scores and advice. CK only factors open accounts into AAoA whereas FICO includes both open and closed accounts. FICO also includes closed accounts into your credit mix.

And I also agree with Dave that you won't lose the AAoA or credit length history on those paid off, closed accounts.

And last but certainly not least paying down/paying off debt should always be your #1 goal.

Re: Worst 8400 I've spent in a while

ceejx — Wed, 01 Aug 2012 13:52:17 GMT

@Anonymous wrote:
I understand, but my main problem is AAoA and paying them off just got rid of my 8 oldest accounts.

To add to MarineVietVet and DaveSignal, these accounts will remain on your credit report for 10 years from when they are paid off...

Re: Worst 8400 I've spent in a while

Anonymous — Wed, 01 Aug 2012 14:08:15 GMT

You are doing a LOT of worrying over a LOT of nothing.

A bunch of people wish they were in your position, right about now.

Re: Worst 8400 I've spent in a while

jsucool76 — Thu, 02 Aug 2012 15:09:42 GMT

@Anonymous wrote:
You are doing a LOT of worrying over a LOT of nothing.
A bunch of people wish they were in your position, right about now.

This!!!

Even if your score drops a little bit, think about that debt you just got off your shoulders. I'd be willing to let my score drop a couple of points if it meant that all my loans were PIF'd and I didnt owe anyone money anymore.

Re: Worst 8400 I've spent in a while

Repo-ed — Fri, 03 Aug 2012 00:30:36 GMT

My DGF owes 76.2k

I think she would gladly traid you.